January 9, 2024
Verivend receives investment from Launch NY; now featured on its Investor Network
Buffalo-based fintech startup is the latest 43North company to successfully connect with private investors through Launch NY’s Investor Network
Billed as “the Venmo of private capital,” Verivend set fourth quarter records for new customers and transaction volume
Launch NY is once again investing in Buffalo-based fintech startup Verivend as part of a larger seed extension round, fueling the company’s growth as it reaches new heights in customer acquisition and transaction volume.
Launch NY is investing $50,000 from its nonprofit Seed Fund into the company – previous investments from its non-profit Seed Fund and for-profit Seed Fund I totaled $100,000. Additionally, Verivend is now featured on Launch NY’s Investor Network, a network of more than 300 accredited investors who are committed to backing startups in Upstate New York. Verivend has already secured one commitment through the Investor Network and is in due diligence with several others.
“Verivend has a team of first-rate founders who’ve built their platform alongside customers, established product-market fit and are ready to invest in significant growth,” said Marnie LaVigne, Ph.D., president and CEO of Launch NY. “By featuring them on our Investor Network, we’re giving that team access to accredited investors across the country who believe that Upstate New York founders can build top-notch startups that create jobs and opportunity in their communities.”
Verivend was co-founded in 2019 by CEO Rodney Reisdorf, CTO Jonathan Ebel and G. Aaron Santarosa. Reisdorf was an early employee and technology leader at Liazon Corp., which was sold to the company that became Willis Towers Watson in 2013. Ebel was chief architect at ACV Auctions, a Buffalo-based software unicorn that went public in 2021.
The company has developed a payments platform purposefully built to move private capital that provides a secure environment for firms, funds and their LPs to seamlessly complete investment transactions. Verivend’s fourth quarter was its highest-ever for customer acquisition and transaction volume – meaning the company is effectively growing its marketshare while also expanding its business for current customers.
Verivend has more than 90 customers that include investment funds and sponsors from across the country, boasts a 100% renewal rate and has processed nearly $1 billion in transaction volume through the end of 2023. Its customers are using the platform with more than 6,000 investors and limited partners.
Verivend is making this progress despite a difficult time for the finance industry as inflation, interest rates and other factors have led to a broad slowdown in investment activity. Verivend, which has grown to 10 employees, is poised to grow as those markets recover.
“We brought a solution to the private capital market that solves a very specific pain point and is enabling us to build deep customer engagements,” Reisdorf said. “That meaningful traction has been the key to our company’s growth as deal activity picks up. It’s a validation point as we rapidly onboard new customers, and active proof of our ability to expand with existing clients.”
Verivend won a $500,000 prize in the 43North finals and is the latest 43North company to be featured on Launch NY’s Investor Network. Previous 43North winners ShearShare and BetterMynd have used the network as a tool to meet high-quality investors with a pre-existing interest in backing startups from Upstate New York.
The Investor Network is also a way for accredited investors across the country to gain exclusive access to pre-vetted startup deals in Upstate New York with a no-cost and no-obligation setup. Launch NY announced in January 2023 that it had hired Katie Hestor to manage the Investor Network.
“This is a one-of-its-kind marketplace that creates meaningful connections between startup leaders who need capital and investors with an acknowledged interest in backing local companies,” Hestor said. “The Investor Network plays a key role in our mission to catalyze the incredible innovation happening in our communities, creating a movement that draws more talent and investment dollars to Upstate New York.”
###
About Launch NY: Launch NY is the only nonprofit venture development organization and U.S. Treasury- designated Community Development Financial Institution (CDFI) that serves and directly funds startups in the 27 westernmost counties of New York state. The core mission of Launch NY is to identify, support and invest in high‐growth, high‐impact companies and to catalyze the entrepreneurial culture of Upstate New York through regional collaboration with ecosystem partners. Since its inception in 2012, Launch NY has served more than 1,500 companies which have gone on to raise more than $1.6 billion, generate over $240 million in annual revenues and support more than 5,000 jobs. Launch NY delivers its mission via mentorship and capital access programs, starting with pro bono mentoring through its Entrepreneur-in- Residence program, Founders Go Big program for underrepresented and underserved founders, and Emerging Cleantech Opportunity (ECO) Incubator. These programs prepare entrepreneurs for investment capital from multiple sources, including Launch NY’s InvestLocal Financing Programs comprised of non- profit and for-profit investment funds, and Investor Network deals marketplace that features hundreds of accredited investors. Through these vehicles, Launch NY is the most active seed investor in New York state and has been ranked among the top 5 nonprofit seed funds in the country.
For more information about Launch NY, its programs, and other entrepreneurial opportunities, visit www.launchny.org, and follow Launch NY on Facebook , Twitter and LinkedIn.
Tag: Press release, Verivend, Investor network, Startup funding, Tech innovation, New York startups, Venture capital, Entrepreneurship, Funding announcement, Business growth, Tech startup investments, Launch NY news, Early-stage investment opportunities, Seed funding for startups, Startup accelerator programs, Innovation ecosystem support, Launch NY.